Chevron Extends Dividend Growth Streak to 39 Years with 4% Increase
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Dividend Growth Momentum: Chevron raised its quarterly dividend by 4% to $1.78 per share, annualizing to $7.12, extending its growth streak to 39 years, which underscores the company's commitment to shareholder returns and is likely to attract more investor interest.
- Passive Income Potential: A $3,000 investment in Chevron at the current price of around $185 allows for the purchase of 16 shares, yielding an expected $113.92 in dividends in the first year, with a cumulative total of $617.03 over five years, significantly outperforming other peers.
- Strong Cash Flow Support: Chevron generated $16.6 billion in free cash flow last year, achieving industry-leading growth despite falling oil prices, and expects a $12.5 billion increase in free cash flow this year, ensuring the company can sustain and grow its dividends.
- Future Growth Expectations: The company anticipates its free cash flow will grow at a compound annual growth rate of over 10% through 2030, driven by expansion projects and the Hess acquisition, providing ample funding for future dividend increases.
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Analyst Views on CVX
Wall Street analysts forecast CVX stock price to fall
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 184.780
Low
158.00
Averages
176.95
High
206.00
Current: 184.780
Low
158.00
Averages
176.95
High
206.00
About CVX
Chevron Corporation is an integrated energy company. The Company produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance its business and industry. The Company’s segments include Upstream and Downstream. Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; liquefaction, transportation and regasification associated with LNG; transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; carbon capture and storage; and a gas-to-liquids plant. Downstream operations consist primarily of the refining of crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels, and transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Chevron Extends Dividend Growth Streak to 39 Years with 4% Increase
- Dividend Growth Momentum: Chevron raised its quarterly dividend by 4% to $1.78 per share, annualizing to $7.12, extending its growth streak to 39 years, which underscores the company's commitment to shareholder returns and is likely to attract more investor interest.
- Passive Income Potential: A $3,000 investment in Chevron at the current price of around $185 allows for the purchase of 16 shares, yielding an expected $113.92 in dividends in the first year, with a cumulative total of $617.03 over five years, significantly outperforming other peers.
- Strong Cash Flow Support: Chevron generated $16.6 billion in free cash flow last year, achieving industry-leading growth despite falling oil prices, and expects a $12.5 billion increase in free cash flow this year, ensuring the company can sustain and grow its dividends.
- Future Growth Expectations: The company anticipates its free cash flow will grow at a compound annual growth rate of over 10% through 2030, driven by expansion projects and the Hess acquisition, providing ample funding for future dividend increases.
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Chevron Extends Dividend Growth Streak to 39 Years with 4% Increase
- Dividend Growth Momentum: Chevron raised its quarterly dividend by 4% to $1.78 per share, annualizing to $7.12, extending its growth streak to 39 years, which underscores the company's commitment to shareholder returns and is likely to attract more investor interest.
- Passive Income Potential: A $3,000 investment in Chevron at the current price of around $185 allows for the purchase of 16 shares, yielding an expected $113.92 in dividends in the first year, with a cumulative total of $617.03 over five years, significantly outperforming other peers.
- Strong Cash Flow Support: Chevron generated $16.6 billion in free cash flow last year, achieving industry-leading growth despite falling oil prices, and expects a $12.5 billion increase in free cash flow this year, ensuring the company can sustain and grow its dividends.
- Future Growth Expectations: The company anticipates its free cash flow will grow at a compound annual growth rate of over 10% through 2030, driven by expansion projects and the Hess acquisition, providing ample funding for future dividend increases.
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Economists Predict No End to Tariffs Anytime Soon
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- Market Insights: The commentary provides insights and perspectives on current market trends and investment strategies.
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BofA Analyzes Asset Performance Post-Geopolitical Events
- Oil Price Surge: Crude oil prices typically rally after geopolitical events, with data showing a median increase of over 18% three months post-event since 1939, indicating strong market reactions that could influence investor asset allocation strategies.
- Gold's Safe-Haven Appeal: Gold, traditionally viewed as a safe-haven asset, has seen a median gain of about 6% in the three months following the onset of a crisis, reflecting increased demand for secure investments despite heightened volatility attracting retail investors.
- Stock Market Stagnation: In contrast to oil and gold, U.S. stocks have added less than 5% during the same timeframe, indicating a relatively muted response from the stock market amid geopolitical tensions, which may affect investor confidence in equities.
- Market Reaction Patterns: A Barclays report highlights that the S&P 500 tends to experience modest gains the day before and on the day of significant geopolitical events, suggesting that the market anticipates such incidents, yet overall changes remain minimal, reflecting a cautious investor sentiment.
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Market Great Rotation Trend Persists
- Dow Jones Performance: The Dow Jones Industrial Average is only 2% off its all-time high above $50,000, indicating strong market confidence as investors shift towards higher-quality blue chips for better risk/reward opportunities.
- Investor Capital Flow: As capital moves away from the high-valuation 'Magnificent 7', the other 493 stocks in the S&P 500 are having a tremendous start to 2026, with the index up nearly 10% if excluding the Magnificent 7's performance, suggesting a broad market recovery.
- Economic Growth Drivers: Despite weaker GDP numbers, the U.S. economy remains strong with expected interest rate cuts, accelerated infrastructure and AI build-outs, energy production growth, and resilient consumer spending, all favoring the Dow's diverse mix of sectors.
- Options Trading Strategy: Investors executed a call spread by buying the 3/27/2026 $495 Call and selling the $500 Call when DIA was trading around $492, costing $2.50, reflecting confidence in the Dow's upward trajectory.
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- Military Action Consideration: Trump stated during a breakfast with governors that he is considering limited military strikes against Iran to pressure its nuclear program, with a decision expected in 10 to 15 days, potentially escalating tensions in the Middle East.
- Oil Price Stability: Following Trump's remarks, oil prices remained stable despite a more than 5% rally this week, reflecting market pricing in the risk of imminent U.S. military action, with WTI crude at $66.15 per barrel.
- Military Buildup: A significant U.S. military buildup is underway in the Middle East, with the USS Abraham Lincoln aircraft carrier stationed in the region and the USS Gerald Ford en route, which may further heighten tensions with Iran.
- Strait of Hormuz Significance: The Strait of Hormuz is a vital chokepoint for global oil trade, with over 14 million barrels per day passing through in 2025, accounting for a third of total worldwide seaborne oil exports, and any conflict could disrupt these crucial oil flows, impacting global markets.
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Amazon Surpasses Walmart in Quarterly Revenue for the First Time
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- Economic Data Release: The U.S. personal consumption expenditures price index for December will be released at 8:30 a.m. ET, serving as the Federal Reserve's preferred inflation gauge, alongside GDP, consumer spending, and income data, providing crucial insights into economic health for investors.
- Job Market Changes: Data shows the wage growth gap between job switchers and stayers has narrowed to 2 percentage points, down from 8.4 points in April 2022, reflecting the changing economic environment's impact on salary increases, particularly in hospitality and leisure sectors where staying is more beneficial for pay raises.
- California Housing Crisis: Due to skyrocketing rents and a housing shortage, the percentage of homeless individuals living in RVs in Santa Clara County has risen from 18% in 2019 to 37% last year, highlighting the severity of the housing crisis, prompting the government to allocate 128 RV spaces to assist residents in transition.
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